The Tata Group has kickstarted preparations for a $2-billion initial public offering (IPO) of Tata Capital, initiating discussions with couple of bankers, multiple people familiar with the matter told ET.

The conglomerate recently gave Kotak Investment Banking officials the go-ahead to commence the process after a meeting, they said. It plans to appoint additional bankers by January, they added.
As per the Reserve Bank of India (RBI) regulations, Tata Sons and Tata Capital, classified as upper-layer non-banking financial companies (NBFCs), are required to list their shares by September 2025.

Tata Sons holds a 93% stake in Tata Capital.
Emailed queries to Tata Group, Tata Capital and Kotak Investment Bank did not elicit any response.
This will mark the Tata Group's second IPO in two decades, following Tata Technologies bumper listing in November last year.

The group’s previous IPO was by Tata Consultancy Services (TCS) in 2004, when it launched a Rs 5,500-crore offer.
Tata Capital’s unlisted shares, which surged from Rs 450 in December last year to Rs 1,100 in April, are currently trading at around Rs 900 in the unlisted market.

At this price, the unlisted market is valuing the company at Rs 3.5 lakh crore ..
Cleantech Capital—and three investment and advisory businesses—Tata Securities, Tata Capital Singapore and private equity.

Tata Capital is also strategically important to the Tata Group because it caters to the funding requirements of various entities associated with the conglomerate, such as its suppliers, vendors and dealers. For the year ended March 31, 2024, Tata Capital reported a revenue of Rs 18,178 crore, a 34% jump over .

The company posted a net profit of Rs 3,315 c ..

The company posted a net profit of Rs 3,315 crore, a 12% increase over  profits. The NBFC has a net worth of Rs 23,417 crore as on March 31, 2024. In , Tata Capital raised Rs 593.80 crore through a rights issue, offering shares at Rs 125.10 per share.

Published On -24 Dec 2024,10:23 AM

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